FDJ Reports Strong Growth in 2024 Amid Looming Tax Increases

Solid Revenue Growth Driven by Kindred Acquisition

The financial boost was partially fueled by its acquisition of Kindred, whose contribution was accounted for from October 11. Excluding Kindred, the company’s revenue still saw a 10% rise, with gaming revenue in France up by 6%.

The Group also posted a 21% increase in recurring EBITDA, reaching €792 million, with an EBITDA margin of 25.8%. These figures highlight FDJ’s continued dominance in the regulated French market and its ability to integrate new assets effectively.

Tax Hikes Set to Impact 2025 Earnings

Despite a strong performance in 2024, FDJ is preparing for financial headwinds as the French government moves forward with new tax measures on the gaming sector. The legislation, currently under parliamentary review, is expected to come into effect on July 1, 2025, bringing multiple increases in public levies:

• Loto and Euromillions: Public levies to rise from 68% to 69% of GGR, with the social security levy (CSG) increasing from 6.2% to 7.2%.
• Retail sports betting: Public levies to increase from 41.1% to 42.1% of GGR, with CSG rising from 6.6% to 7.6%.
• Online sports betting: Public levies to jump from 54.9% to 59.3% of GGR, including a steep increase in CSG from 10.6% to 15%.
• Online poker: Taxation shifting from 0.2% of stakes to 10% of GGR.
• Horse race betting: No change in CSG, but public levies will rise from 52.3% to 52.9% of GGR, with additional levies directed toward racecourse companies.
• Draw games and instant games: Public levies to rise from 55.5% to 56.5% of GGR, with an increase in CSG from 6.2% to 7.2%.

Additionally, the Social Security Financing Act introduces a 15% tax on advertising and promotional spending by gaming operators, adding further financial strain on the sector.

FDJ’s Strategy to Offset Financial Impact

FDJ estimates that the new tax regime will reduce its revenue and recurring EBITDA by approximately €45 million in the second half of 2025, with the full-year impact projected at nearly €90 million.

In response, the company has announced a multi-year action plan to mitigate the effects of increased taxation. While details of the strategy have not been disclosed, it is expected to include cost optimizations, operational efficiencies, and potential pricing adjustments.